AAA<\/p>\n
I don\u2019t want to leave an inheritance. How can I live and use up everything I have built up? I\u2019m 59 and don\u2019t have children, so I don\u2019t have anyone to leave my money to. I own my apartment and have some super. \u202fI work full-time and think I need to keep working to 65, but would love to retire sooner. \u202f<\/p>\n
It\u2019s inconvenient that we don\u2019t know how long we are going to live. That\u2019s the primary challenge you face here.<\/p>\n
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Want to spend it all and leave nothing behind? With a bit of careful planning, you can.Simon Letch<\/p>\n
Your super could be invested in a lifetime annuity at the point that you retire. Lifetime annuities pay you a fixed amount of income every month until you pass away. Be sure to buy one which adjusts for inflation each year. Lifetime annuities don\u2019t offer a lot of flexibility, so consider retaining a portion of your super in a more typical account-based pension.<\/p>\n
You could access the equity in your home via selling and then renting. But losing the security of owning the roof over your head would not appeal to me. Alternatively, you could use an equity release scheme, such as the one provided by the government, with the debt cleared when your home is sold, either upon death, or because you have entered aged care.<\/p>\n
Given the potential need for care later in life though, my inclination would be to hold on to your home equity, and take comfort from the fact that this is available to fund any care needs. Dying with zero might be tricky to accomplish, but you should be able to come close.<\/p>\n
Get a financial planner to do some modelling for you to test whether you need to work until 65. A lifetime annuity provides considerable certainty, which potentially allows you to finish up earlier.<\/p>\n
Is it worthwhile claiming a tax deduction for my super contributions if my taxable income is under the $45,000 threshold? I\u2019m 64, single and semi-retired. I have been trying to get $30,000 into super each year for the past few years to build up a nest egg for later in life when things like aged care might become relevant.<\/p>\n
No, it is not. In fact, you may end up paying more tax.<\/p>\n
When we make a tax-deductible contribution to super (a concessional contribution to use the jargon), 15 per cent tax is deducted by the super fund. For you to gain a benefit, it must be the case that your personal tax payable exceeds 15 per cent.<\/p>\n
As of July 1 this year, the tax rate applicable for income between $18,201 and $45,000 is 15 per cent, so income reduced in this band due to claiming a super contribution tax deduction achieves no benefit.<\/p>\n
Editor’s pick You save 15 per cent tax personally, but then pay it anyway when the money arrives in your super fund. You have saved on the 2 per cent Medicare surcharge, but I doubt that\u2019s sufficient to be worth the bother.<\/p>\n But having a neutral outcome is actually best case because if the tax deduction takes you below the $18,201 point, there would have been 0 per cent tax applied to this money, whereas now you have paid the 15 per cent super contributions tax.<\/p>\n It\u2019s also worth noting that the ATO won\u2019t allow a tax-deductible super contribution to take your income into negative territory. So if your taxable income is less than the amount you contribute into super, the claim will get disallowed anyhow. This is not to say you shouldn\u2019t contribute to super, just that a non-concessional contribution might serve you better.<\/p>\n Paul Benson is a Certified Financial Planner at Guidance Financial Services<\/a>. He hosts the Financial Autonomy podcast. Questions to: paul@financialautonomy.com.au<\/a><\/p>\n Advice given in this article is general in nature and is not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n Remove items from your saved list<\/a> to add more.<\/p>\n![\"Helping](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/8a81aed6f5e1a858dce5f667ce49455fc724c0f9.jpeg\")
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